Answer:
The answer is: D) $6,277.50
Explanation:
Total costs are made up of fixed costs + variable costs.
Fixed costs are costs that don't change with an increase or decrease in the production levels (Botana's fixed costs are $1,200).
Variable costs are costs that change with an increase or decrease in the production levels (Botana's variable costs = $8.10 per labor hour x 775 labor hours = $6,277.50)
